The boy’s family, who realised the child was missing from a nearby home, were attempting to catch up with him when he ran out on to the road.

The driver of the station wagon allegedly failed to stop and drove away from the scene.

A short time later police located the Holden at a shopping centre on Central Avenue.

A 21-year-old man Laverton man was arrested at a home on Railway Avenue and is currently assisting police with their enquiries.

The child remains in hospital in a critical condition.

Police are urging anyone with information or who witnessed the incident and anyone who may have dash cam footage, to contact Crime Stoppers on 1800 333 000 or submit a confidential report online at www.crimestoppersvic.com.au